>> welcome to "lunch money," where we tie together the best stories. here is what we got. and 0's,more than 1's the largest mobile phone michelle. -- the largest phone the show. blackberry. where he is placing his bets. design, the practical and magical. we way here from top innovators. in sports, the winter olympics may be over but there is plenty

of time for winter games. , every sinceit off protesters started cap got in kiev, anger has been building and subtly change came overnight. a quick recap this weekend. presidenttion and viktor yanukovych signed a deal that would've form a new government. and he called for the recent events and he said he would not leave the ukraine or resign. -- lawmakersid voted to oust him and he was later caught at the border but he was not detained. parliament siege to his luxury management. parliament showed its speaker as the interim president. that is him in the black turtleneck. government --ion he said a coalition government will be for tomorrow. they have big financial problems.

they said eight if needed to avoid default. the u.s. and the eu are working. they are trying not to antagonize russia which is as it turns out is intertwined. a it is a sizable country and sizable part of russia's a trade. russia has enters and the ukraine. it was deemed essentially as part of russia. -- russia has an interest in the ukraine and strong connections and interest not only in oil and shipments of gas but across the economy. last year when the ukraine was negotiating with the eu on concession, there was a lot of neglect. not that russia was stopping the deal, but a lot of neglect about a russia's role interest and welcome the massive trade divergent from the ukraine to brussels.

that is a university professor. he wouldn't know. former russian president invited to transform the post-communist russia into a market economy. he has insight into the pro russia, pro-european. and the role of vladimir putin. is trying to he maintain a strong russian influence not only in his region but the middle east and syria and elsewhere. rush is a major power without question. i do not think it is a soviet bloc. -- russia is a major power without question, i do not think it is a soviet bloc. this is a country in the middle and it has to be treated accordingly. if the eu just pushes all of the way, the ukraine, you are hours. >> this is going to come with a price tax.

the big question, how likely is a ukraine default? issue wast think the they were really going to default and the absence of a civil war. our assessment was when the the shooting started, it was at least a good time to start stepping in this kelling. -- scaling. we did not predict they would escalate. >> that is somebody else who would know. the debt restructuring committee for greece and played a key role in argentina. hans tribble his state and ukrainian bonds last week -- triple his stake in a ukrainian bonds last week. >> agrees in argentina, unsustainable debt load. the ukraine was purely political. the gdp ratio was 40. this is really a matter of liquidity not solvency.

argentina and greece, it was solvency. when you talk but a bailout, it'll be financing. in the case of argentina and greece, a needed a restructure. >> not enough money coming in. russia is criticizing the big shift in the ukraine and said the recent peace accord is under threat. they said they are used by the opposition. fulton is backing president viktor yanukovych. things are not always what they seem. >> some of the western observers are saying russia simply has not played a strong hand and the idea that viktor yanukovych was a puppet is not right. interpretedtimes here as all putin manipulation is being denied by some the closest western observers say this was a ukraine max -- mess war russia said this guy is a reliable. he is not delivering and they do

not want to this. that is for sure. >> what is next for ukraine politically speaking? >> if they will continue to exist, it will need a form of federalism that take into account the different interests of the eastern side and west are side and a new agreement on krem ya. the base of the russian black sea and part of russia until 1954 when it was transferred to the ukrainian province of the soviet union now the ukraine. it is the flashpoint. to head tooing barcelona where companies are gathering for the world mobile conference. . company changing ford said no more to microsoft. the details coming up in motors. a six-year-old boy, rescued and china's progress. he was playing near the window when he got trapped.

his mother was away so firefighters had to break in. neighbors helped him up to keep him from falling. amazing. ♪

>> this is "lunch money" on bloomberg television. i am adam johnson. in tech, we headed to barcelona where leaders are meeting for mobile world congress. andlargest gathering companies are unveiling their

latest devices. innovators are in attendance. in a keynote session, a big announcement was made. free voice service. caroline hyde spoke to him earlier. big announcement that it would not only be messages you will be able to send for free for $.99. it is going to be calls that are going to bring to make as well. that was the key big announcement. the question i put to him, did you ever envision a product? he grew up in the ukraine where you had very little privacy and your phone calls and also very expensive to talk abroad and that is why he came over the principal. did he think it would extend? he say he is amazed by the company, the growth. toalso, samsung is expected unveil galaxy s5.

it has a number of new apps. sam grobart explains. >> banding together to fight a common foe. think about it. thrones" and house of cards. again betweenning samsung and google. with the unveiling of samsung latest s5 phone thomas it heralds a new feeling. the two companies announced a sweeping agreement regarding patents and intellectual property that will increase cooperation between samsung and google. it is expected that google will tone down development of its own app favoring ones made by samsung. users it used to have this weird universe with google and samsung apps that did the same thing. that should end soon with the google apps coming out.

for samsung, letting google apps take the spotlight made the the most expedient move. google wants a tighter rein on his android. because the os is open, any company can use it and any copy can modify as it chooses including cutting google entirely out. run on android but all apps and services go to amazon not to google. knowingcan sleep easier google has sold motorola. a rival that was making things awkward between the two companies. it is not like there are not other rivals. and of course, apple. for samsung and google, things are like the episode in star trek when they form the alliance. they are friends. for now. >> one phone maker not at the conference, apple.

it still made headlines over the weekend. they revealed a security bug in the system called go to fail. it was first discovered in ios and then mac. that somebody is listening in or change your data. richard falcon explains the severity of the problem and the surveillance team. >> it is a disaster at coding problem on the part of apple that affects is a mobile devices and its desktop devices. the patch is not ready. >> my computer got glitches at home. >> is still compromise. it allows, a protocol that allows a browser to interact with a server in a way they trust each other like a digital handshake. it defeats the ability to figure out the person on the other side is who they say they are. it is systemic and a problem with the infrastructure. it is disaster for apple.

>> have they been quiet? >> they have been caught red-handed. they were not hacked. it was terrible maintenance and coding. >> what can you do to protect yourself? you are never really safe. done.urity is never you can never appoint lay product and said this is absolute secure. we know android had their own problems. these things, all. when you are taught about mobility and security, you have to think about multiple layers. these are very complicated devices. what youssing power is would see on a pc just a few short years ago. they are doing multitasking a very rich, deep experiences. like, if it had just texting. the true testament of a company and how they respond in these times of crises and their

customers and if they are being transparent and if people know the tools available that would protect him into these kinds of situations? >> apple has released an update to patch it. they said they are working on a software fix for is the desktop operating system -- that should be available in a few days. carmakers are driving into the future by going to the past. week'sew of business second annual design conference. look at this. rio de janeiro gets ready for carnival. hundreds of dancers practicing. it featured dancers performing a cleansing ritual as the city gears up for the kickoff of carnival and that is next week. buy your tickets. ♪

>> this is "lunch money" on bloomberg television. we are streaming on your smart phone. today in motors, the auto industry is changing. we will start with four. they will use a blackberry technology and drop microsoft. not sinking.was matt miller with the story. >> they have not confirmed any details about it. this is coming from people

familiar with the company's plans. it may say lot of sense. ford has had real problems with technologyft synch it is cars. ford and lincoln brands ranked 26 and 27 out of 28 and a consumer report because of these problems. it is anderson that the blackberry can come in here and try to save -- it is interesting that blackberry can't come in here and try to save ford. respectability and reliability. saving that brand in a sense and is division. this is the key to it. the software company that blackberry bought for 200 million dollars. they make software that runs for nuclear plants and military drones. it has to things that cannot fail. >> it has been tested?

>> bulletproof. a log carmakers. bmw uses it. a volkswagen. in previousen used carmakers. it is leaps and bounds and therefore's -- and then afford --than ford's system. >> what was wrong? >> oftentimes, it did not work. if you wanted to for example turn off your seat heaters, sometime the screen would blank out a you cannot which was annoying. that was the problem. a lot of times it would black out or fail. you would get in the car and a half of the time your phone does not sycn up. it continues to be a real problem. such interesting timing right said no to the job.

he is able to get the contract. >> honda is taking a page. technology expert will be the first woman to sit on the anda's all-male board shareholders will vote in june. they have started to make content in mexico to move production from japan to north america for vehicles sold in the u.s. it will cost about $800 million. moving forward or by looking back. sports cars are getting a retro look. matt miller has more on these throwbacks. 2014 but by the looks of cars hitting the stories, the 1960's are back in full swing. >> ♪ that has persisted for years that is more powerful than ever before. the brand-new porsche. the thing people are so excited about is the styling. a bar thatsilver

harkens back to the original in 1965 on a totally obviously modern sports car. chrysler has taken it to a wholly new level of getting visit dodge challenger a shaker. a natural factory option. hot rodders can put these on their muscle cars. it keeps things colder and produce more power. is one automaker that is 1960's styling is a cut above the rest. is a camaro? no. a mustang? no. the most important muscle cars. the company will not say much about its owner. they are thought to be owned by a european car fanatic. s that callsequi over $200,000.

it is not the supercharged of thishat is a star car. the owner wanted to create something that was limited and altra -- ultra high-end. y customizable to the exterior. it has carbon ceramic brakes used by farah ring. -- by ferrari. ands handbuilt in detroit they have sold 20 and they only plan all build a few more. it will be exclusive. while will be souped-up news 1960's style cars will cost you a quarter of a million dollars, buying original america muscle could calls to you the same -- could calls to you about the same or more. >> to new energy. we'll hear from a ceo of general electric. , athletes canergy

finally go home and rest. the final medal count is coming up in sports. ♪

>> this is "lunch money" on bloomberg television. i am adam johnson. today movies and pictures where the video is the story. a political shift in egypt. on tv to minister goes break the news that his government is resigning. it clears away for the defense minister to run for president. the cabinet has been under pressure for handling of the economy and worsening violence. -- the woman who was believed to be the longest living holocaust survivor has died. she was an accomplished pianist.

she was sentenced to a concentration camp. camp wasreed when the liberated in 1945. korean families were reunited. the meetings, the latest in a series of reunions. and estimated tens of thousands of korean families were separated by the war. energy 2020. general electric ceo sees a big things for the future of energy. he laid out his vision in a conference on the world changing energy landscape. he said a big part is natural gas. numbers but not our public numbers and that our job creators and gdp creator. create great economic activity. maybeold electricity is half or a third of the cost today.

you have tremendous competitive advantage and opportunity not that it is easy. this is something we will talk about as being potentially a big economic driver for the united states. >> he said the need for energy and innovation is economic. >> we believe innovation has to be applied to help drive results. we have been public and our efforts. we think with innovation, this is an economic storm that has an environmental impact and we have treated it that way. we have invested around to those lines. is not anation, it either or, you can do both. most industry if not all has joined along in the last nine or 10 years. lt stressed emerging markets focusing on business opportunities outside of the u.s. all the different businesses and how we touch energy, it is probably $50

billion globally. nobody sees different challenges and opportunities today than ge. we stress to all of the emerging markets and we have about 50% market share. in algeria over the next three years and then the united states and we have seen emerging markets in a profound way. >> will the united states see energy independence soon? stephanie ruhle sat down with jeff immelt. he said we will see more of ge and china. >> while the u.s. said it is more energy independence if he ,hooses to or security for sure but we still want to trade with other regions and other regions will be important. i will leave that to the people

here in washington to decide. what is different today is between canada and u.s. and mexico, you have complementary fields. beyond being a political slogan or things like that, there is transformation feels and natural gas in the united states. if mexico enables their energy reform policy, mexico could be one of the biggest producers in the world. if with a link the system with pipelines, the north american region has an incredible energy future sitting right in front of us. china increases its shale deposits, what role does ge play? >> that a bunch of shell capabilities and the northern part of the country. they lack the water and technology today to get at it. a lot to the innovation we work on, we would be working just as hard in china and other places

to try and enable gas developments and in those countries as well. if you look at china, they have such an energy pollution issue today. gas is one of the things the government of china is looking at in terms of opening up new potentials for their country really. books that would ge chairman jeff immelt. imagination,e eco they have pledged $10 billion to cleaner energy. we will take a look at how all top designers are innovating everyday products. we are going to introduce you to the british watchmakers who are changing how we look at time. all of that is coming up in design. how about this? malone fashion week wrapping -- milan fashion week wrapping up. ♪

>> this is "lunch money" on bloomberg television. we are also streamed on bloomberg.com. designers come together for the second annual bloomberg design conference. new gold design will be there. he is one of the creators of fit . >> it is a big question, what is design? ♪

>> design is the act of taking something usable, practical, and it needed a making it into an enjoyable, culturally grounded product. most people came to look at the design as a style. a vision. it is a lot more than that. a visceral experience of how it is made in the materials and how well put together the object is a. it is well beyond the visual. i love these moments were suddenly inks click and you have a very complex problem sorted out. you have this physical, intuitive feeling this is a great idea. the second of moment i like it was something we do really changes the way a company or industry deals with technology.

there weredays, designers and engineers and designers were supposedly the superficial types doing of the exterior and engineers were inside/out. here in the studio, things are mixed up. our engineers are savvy about engineering values. we make things simple and clear and looks awesome. businessweek is hosting a design conference at san francisco center for the arts on march 10. for tickets and information, go to bloomberg.com. watches,think of fine you probably think all was switzerland. not too fast. a british company is catching on. it is called bremont. the brothers who are making it takes. >> data died in a plane crash.

died in a plane crash and life is so short. accidenta flying killed their father, they decided to start a business they felt passionate about. watches. >> you can tell the time on a mobile phone or a battery-powered watch. to passion than a watch anyway. we are designers. we design watches. we need inspiration. but some of bremont's watches include parts of history. they are often spotted on the wrist of the rich and famous as some are destined for adventure. >> probably a large portion of our business is making for military around the world now. we ended up working on -- it was amazing. they make 75% of the world's

jet. >> all of their watches pass through this factory. what does the future hold? quirks -- >> would've opened up in hong kong and the middle east which is a really good market for us. we have announced this week a big deal. the world's really for us to go at. we'll cannot suddenly double our production overnight. theyey may have anti-but do not think flying solo is for everybody. gh, but they do not think flying solo is for everybody. >> you really need the passion. when you have a burning desire, you can conquer it. it is not and everybody's dna. >> anna edwards. ent for aect complem

bremont watch is a pair of skis. we'll show you how to survive an avalanche. that is after the break. ♪

>> this is "lunch money" on bloomberg television. i am adam johnson. the 2014 winter olympics officially came to a close yesterday. an interesting run at the sochi games started with a rough start. hold till and senate -- hotel and sanitation problems. it ended out well. snafuganizers even had a

about to be ring that did not light up. country won 33t medals overall. the americans had a sweep in the ski competition. they will be featured on a special box of corn flakes. if you want to go back to like those guys, our international correspondent has an answer. a company that is using costly and surprising materials. >> made by hand for special customers. an unusual message. even more unusual materials. breaking the mass production alike aluminum and fiberglass, they use carbon fibers and rubber.

materials too expensive even for top level racing. want the best available materials. we started with that. it started as a niche. >> high prices indeed. the special edition skis for bentley cost 10,000 dollars. down the line, the collection is a little less expensive. zai is targeting a discerning skier thomas somebody who can afford it and appreciate their kind of design. the design team is made of ski fanatics. one a look shows where their passions alive. and that they think it gave them a cutting-edge. in theis, one of six

whole world. it was especially designed for zai so each chamber can be adjusted for 0.01 of a millimeter. they talk a precision and quality driving the design. tentso said they can lose -- the ceo said mass-produce keys can lose if attention with in two months. mass-produced skis can lose their tension in two months. >> [indiscernible] hours last so long. >> the world's most expensive skis could turn out to be a good investment. hans nichols. >> more skiers are wearing helmets and that means they are going off beat. and a risk of greater avalanches. here some equipment you would need.

snow,it is really heavy you are dead already. ♪ everything cracked around me. i understood i was on top of a huge lift. i was a huge avalanche. so much power. sometimes, you just -- all over. [indiscernible] differences in the time of the it is really say dangerous. to ride in an- avalanche to know. [indiscernible] the most important thing is it

keeps you out of it and the floating. m,u do not really need to swi you are out of the avalanche. it is -- [indiscernible] >> if that is not enough to get your adrenaline tom think, -- pumping, here is the mystery meat. worlds the ice championship. look at this. ♪ >> let's go! [applause] !> whoa sounding] ♪

>> it is 56 past the hour. we are on the market. where are stocks closed out. just a smidge of a harold missed a record closing. , missed a record closing.

we saw the oil stock perform well as the price of crude was rising and health care performing well as he cuts to medicare reimbursement was lower than anticipated by many other health insurers. let's talk about the rally and where the market could be headed next. an houro bring bloomberg reporter. he follows how the market follows this. it was an interesting rally today. at one point, it was a large rally. 1%. there did not seem to be any kind of macro fundamental that was underlined it is today. >> exactly. when we did our reporting might nobody had a fundamental reason why we are back at the market highs or record sets. we were down from the high in january on february 3. we were talking about the emerging market currencies and unrest and the ukraine and a

tapering and a stimulus. suddenly, we are back where we were a month ago. of sentiment. a lot of people are confused about in terms of fundamental reasons why we are moving so fast. people are also questioning whether what is going on in the world. selloff weat and a had recently based on emerging market concerns, what were you sending the options market? how are people looking ahead? >> i looked at two things. the futures were people can go a long and short. we saw hedge funds and the s&p 500 futures, for the first time since 2012. that was a major sentiment shift as well that happened actually as the market came back. they were short in the s&p 500.

we look at the vix, which is options. that does not really come back to where we were in january before the selloff. we were 12.14 in january before the self started. the emerging market fears created havoc in the market. will not came back to that level. we are around 14-ish. people are still buying options. that is what is going on. fact we hadiven the is quiet, unexpected record today where people may be quick to go bearish when all of that was happening or do we see some bloodshed happening in the market today as you were talking to traders? part of what happened was the decisions we saw in the s&p futures and people got footed by

the quick rebound in the markets because people thought this a correction whether looking for. and suddenly, it is not there and people are rushing to cover their decisions and debts. the perfect set up for a rally. >> and it exacerbates the rally. >> the fundamental reasons. >> i am interested to see what what happened the rest of the week. we will check back in. i appreciated. for on the markets, i am julie hyman. ♪